RALEIGH, NC-- North Carolina installment loan companies could charge higher interest rates on most borrowers and new late fees in legislation tentatively approved by the state Senate.
The chamber voted 39-9 Thursday for legislation sought by the consumer finance industry. Leaders say the industry hasn't had interest rate and loan amount caps changed in 30 years and need help to improve profits.
The bill also contains protections for young military members seeking the loans. The chamber defeated an amendment that would have barred all armed forces members from getting the loans.
Bill supporters say the industry provides a needed form of credit to working people. Opponents said the interest rates remain too high and benefits big corporations that do business in the state.
A final Senate vote is expected next week.